Footfall in the West End was down by 65 per cent yesterday
(Picture: Getty Images)The devastation facing central London’s economy was laid bare today as bosses warned some businesses will never emerge from the “body blow” of a second lockdown.
Footfall in the West End was down by 65 per cent yesterday on the previous Thursday as the Government’s enforced four-week closure of pubs, restaurants, “non-essential” shops and leisure centres came into force.
Business leaders told the Standard that although Chancellor Rishi Sunak’s extension of furlough until April would protect jobs, it will not prevent some already-struggling firms from going under without further support.
The restrictions are forecast to hit the capital’s economy to the tune of £6 billion by December 2.
Kate Nicholls, chief executive of UKHospitality, said: “For venues in London, the lockdown will be another body blow. It will be difficult for some businesses to survive this, so the extended furlough may, in some cases, be of little use.”
Her message was echoed by senior figures across the capital’s hospitality and leisure sectors, whose fragile recovery from the spring lockdown has been shattered.
Despite Boris Johnson’s vow last night that the latest measures will be lifted on December 2, concerns remain that the extension of the job retention scheme could indicate a lengthier shutdown.
David Moore, owner of Michelin-starred Pied à Terre, said: “An extension to the lockdown would mean staff on extended furlough would have no businesses to return to in the new year.“
Des Gunewardena, chief executive of fine dining group D&D London, said: “Businesses can’t afford to keep financing losses and piling on debt. We need a more comprehensive package to get us through lockdown two.
Diners out in Soho the night before England’s second lockdown came into force
AP“However, what the industry needs most is the ability to reopen on December 2. Christmas is a financial lifeline for restaurants. The prospect of missing December trading does not bear thinking about.”
Rob Pitcher, the boss of Revolution Bars, added: “We desperately need the Government to support some of businesses’ fixed costs, such as rent, to extend the business rates holiday for at least another 12 months and to cut the rate of VAT on alcoholic drinks sold for consumption in hospitality premises.”
The Government has announced cash grants of up to £3,000 per month for businesses which are closed, but bosses say that will not cover all overheads.
Matt Grech-Smith, co-chief of Competitive Socialising which operates crazy-golf club Swingers, said: “The extended furlough scheme sounds good but without a road map to go with it, it’s a little meaningless.”
Helen Brocklebank, chief executive of luxury goods trade body Walpole which counts Burberry among its members, said: “With one hand the Chancellor is saving jobs through the furlough scheme whilst with the other, he's taking them away by abolishing tax free shopping for international visitors. We couldn't be more grateful for the Chancellor's swift action on Covid relief, but let's not lose the future."
A spokesman for HM Treasury said: “We’ve supported businesses in London since the start of the pandemic through our package of grants, loans and our furlough scheme."
“We have extended our financial support across the UK to help millions of people continue to provide for their families, and to provide certainty and stability to businesses through the winter."
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